Create a will is one of the most important and responsible steps you can take to ensure that your assets and wishes are honoured after you’re gone. Although it may seem like a daunting process, create a will can be straightforward with the right guidance.
This article provides a detailed overview of the process to create a will, from preparation to finalization.
Why Is a Will Important?
A will is a legal document that outlines how you want your assets distributed, how guardianship should be arranged for minors, and any other final wishes you want honoured. Without a will, the distribution of your estate is determined by state laws, which may not align with your preferences. Having a clear, legally binding will in place provides peace of mind, knowing that your loved ones will be cared for as you intended.
Step 1: List Your Assets and Debts
The first step in creating a will is to inventory all your assets and liabilities. This should include:
- Real Estate: Any property you own, including houses, land, or vacation homes.
- Financial Accounts: Bank accounts, retirement accounts, and investments.
- Valuable Items: Items of significant worth, such as jewellery, vehicles, or art.
Also, document any debts, loans, or liabilities that might impact the net value of your estate. Having a complete inventory helps ensure that your assets are divided appropriately among beneficiaries.
Step 2: Choose Your Beneficiaries
The next step is to decide who will inherit your assets. Beneficiaries can include family members, friends, charities, or other organizations you support. Consider both primary and contingent beneficiaries—individuals who will receive assets if the primary beneficiary is unable to inherit them. Designating beneficiaries thoughtfully is important, as this decision forms the foundation of your will.
Step 3: Appoint an Executor
An executor is a person you choose to carry out the terms of your will. This person will be responsible for settling debts, distributing assets, and managing any other aspects of your estate as directed in your will.
When choosing an executor, consider someone who is:
- Trustworthy and Organized: They should be financially responsible and willing to handle the duties involved.
- Capable of Legal and Financial Tasks: They may need to handle complex responsibilities, including managing paperwork, taxes, and the distribution of assets.
It’s a good idea to discuss this role with your chosen executor beforehand to ensure they are willing to take on the responsibility.
Step 4: Designate Guardianship for Minor Children
If you have minor children, designating a guardian in your will is essential. This person will care for and raise your children in the event of your passing. Without a specified guardian, the court will appoint one based on its assessment, which may not align with your preferences.
When selecting a guardian, consider:
- Values and Lifestyle: Choose someone whose values and parenting style align with your own.
- Financial Stability and Health: The person should be capable of providing a stable home for your children.
Discuss this choice with the potential guardian to confirm they are prepared for the responsibility.
Step 5: Decide on Specific Gifts and Bequests
Specific gifts, or bequests, are items or amounts you leave to particular individuals or organizations. This could include sentimental items, such as family heirlooms, or financial contributions to charities.
To avoid confusion, outline these bequests clearly in your will, ensuring that your intentions are honoured and preventing possible disputes among beneficiaries.
Step 6: Draft the Will
With all decisions made, you’re ready to draft the document. Here are two primary ways to approach this:
- DIY Will-Writing Services: These can be useful for straightforward estates.
- Consulting a Lawyer: For complex estates or specific legal concerns, working with a lawyer ensures that your will meets legal standards and addresses all potential issues.
A complete will generally include:
- Declaration: Stating that it is your last will and testament.
- Beneficiary Details: Listing beneficiaries and their respective inheritances.
- Executor Assignment: Naming the executor and detailing their responsibilities.
- Specific Bequests: Outlining gifts to specific people or organizations.
- Signatures: Signed by you and ideally witnessed and notarized.
Step 7: Sign the Will in Front of Witnesses
For a will to be legally binding, it usually needs to be signed in front of at least two witnesses who are not beneficiaries. The witnesses will sign the document, confirming that you were of sound mind and signed the will willingly.
Consider adding a self-proving affidavit—a document signed by you and your witnesses before a notary. This affidavit can simplify the probate process, as it verifies the validity of the will.
Step 8: Store the Will Safely
Once your will is signed, store it in a secure location, such as a fireproof safe or a bank safe deposit box. Inform your executor or a trusted family member of its location to ensure they can access it when needed. Avoid hiding the will in an obscure place, as this could complicate matters for your executor.
It’s helpful to keep a digital copy for easy reference, but remember that only the original signed version is legally binding.
Step 9: Review and Update the Will Regularly
Life circumstances change, and so should your will. Review it periodically and make updates as needed, especially after significant events such as marriage, the birth of children, or acquiring new assets. This ensures that your will remains relevant and reflects your current wishes.
Each time you make changes, create a new version, and destroy previous copies to avoid confusion. Ensure that the updated will is re-signed with witnesses to maintain its legality.
Conclusion
Create a will is a vital part of planning for the future. By following these steps and carefully considering each element of your estate, you can create a legally binding document that reflects your wishes. Consulting a professional for legal advice is always a wise choice, particularly for complex estates, as it ensures that your will is legally sound and that your legacy will be honored just as you envision.